Malaysia’s Petronas is looking for buyers for its 50% stake in the Tartaruga Verde field in Brazil, eyeing proceeds of up to $1 billion, Bloomberg has reported, citing unnamed sources.
The Malaysian major bought the stake in 2019 from Petrobras, which owns the other 50% of the field, which is located in the Campos Basin—one of Brazil’s most prolific oil regions.
Earlier this year, reports emerged that Petronas was mulling over a divestment of its Canadian business. Per those reports, the company was working with a financial adviser to assess strategic alternatives for the Canadian unit, which could be valued between $6 billion and $7 billion. A minority stake sale was also under consideration, contingent on buyer interest and valuation.
Petrobras, meanwhile, earlier this year said it would prioritize the development of existing oil fields over new exploration and development. The company will seek to revitalize production from aging fields, such as those in the Campos Basin, where recovery rates have declined to just 17% and this “bothers” the company’s management, according to chief executive Magda Chambriard.
The decline in production rate seems to have bothered Petrobras’ partner in Tartaruga Verde, too, prompting the divestment plan for its stake.
Petrobras’ efforts to increase oil and gas production are bearing fruit. Petrobras produced 2.7 million barrels of oil equivalent in the second quarter of the year, which represented a 2.4% increase as the company ramped up production at five platforms and started 12 new wells, of which eight in the Campos Basin and four in the Santos Basin.
The ramp-up follows a 25% drop in Brazilian output earlier this year amid platform maintenance. Now, platforms are returning from maintenance and producing more oil. Earlier-than-expected starts to some projects are also set to help Brazil recover its oil output later this year, and production could exceed forecasts.
By Irina Slav for Oilprice.com
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